Ken Griffin – the billionaire founder of the hedge fund Citadel has been added to the list of those served with a “subpoena” by Twitter in an effort to compel Elon Musk to complete the purchase of the social media platform for $44 billion.
The subpoena was sent to Mr. Griffin following statements from Musk’s lawyers indicating that they have requested recordings from the banks advising Twitter, including Goldman Sachs and JPMorgan, to gather information on how these two entities assisted the company during negotiations with Musk.
Musk’s legal team wants the banks to provide “documents and conversations” regarding their discussions about the merger proposal and the financial condition analysis of Twitter. The subpoena also requests information about any discussions “with or about other potential buyers of Twitter” besides Musk.
According to information from the Financial Times, Goldman Sachs expected to earn $80 million from advising Twitter but would only receive $15 million if the deal fails. JPMorgan planned to receive $53 million but would pocket just $5 million if Musk walked away from the transaction.
These banks are not on the list of defendants in Twitter’s lawsuit. However, the subpoena raises the risk of potentially embarrassing messages being revealed to the public.
When the Twitter purchase was agreed upon in April, Wall Street responded very positively and even hailed it as one of the deals of the year. However, with the deal falling apart, both parties are now in court, causing observers to express concern.
Currently, both Elon Musk and Twitter are ramping up their information searches in preparation for the court hearing on October 17. Musk’s side claims he canceled the deal because Twitter failed to provide him with information about the number of fake accounts on the platform. Twitter argues that Musk’s complaints are merely excuses to back out of the agreement.
Twitter has also sought documents from the advisors to Musk, including Morgan Stanley and other banks, who agreed to help Musk secure loans for the deal. Additionally, they have contacted a number of public investors who would “back” Musk to raise sufficient funds for this agreement. The company has since issued a series of additional subpoenas, including Tesla and SpaceX. Musk’s companies have been asked to present any discussions regarding the Twitter deal, including conversations with their owner.
Binance has also been pulled into the lawsuit. Binance invested $500 million when Elon Musk raised $7.1 billion to facilitate the purchase of Twitter in May. Twitter’s lawyers want to know about the investment agreement and Musk’s efforts to secure financing for the deal.